The Commission today took major steps to reduce regulatory burdens on providers of international telecommunications services, citing rapid changes in the global telecommunications
market. As part of the 1998 biennial regulatory review process, the Commission streamlined the
process for granting Section 214 authorizations to provide international services and increased the
categories of applications eligible for streamlined processing. Under the rules adopted today,
approximately 99 percent of international Section 214 applications will qualify for streamlined
processing. The Commission also adopted a series of measures that remove unnecessary obstacles
to the expansion of service by authorized carriers and give carriers more flexibility to organize their
operations efficiently. Specifically, the Report and Order --

Reduces the waiting period for granting new streamlined applications from 35 days to
14 days.

Allows applications to be granted through the streamlined process regardless of
whether public comments have been filed.

Expands the class of applications eligible for streamlined processing.

Eliminates the requirement for prior approval of pro forma assignments and transfers
of control of Section 214 authorizations.

Allows authorized carriers to provide service through wholly owned subsidiaries
without prior approval, and allows applicants to use the streamlined authorization
process to obtain the same authorizations that any affiliates with the identical
ownership have already obtained.

Allows any authorized facilities-based carrier to use any non-U.S.-licensed undersea
cable system without specific approval.

Simplifies the Commission's process of authorizing the use of private lines to provide
switched services, also known as international simple resale (ISR), on particular
routes.

Reorganizes, clarifies, and simplifies the rules applicable to international Section 214
applications and authorized carriers.

The Commission's action results from a thorough review of its rules governing the licensing
and operations of international carriers. The Telecommunications Act of 1996 directs the
Commission to review on a biennial basis all regulations that apply to providers of telecommunications service and to repeal or modify any regulation it determines to be unnecessary as the result of
meaningful economic competition.

The Report and Order simplifies and shortens the streamlined process for authorizing new
international carriers. Such applications will now be granted 14 days after being placed on public
notice, regardless of whether any public comments are filed. Under previous rules, a streamlined
application was granted 35 days after being placed on public notice only if it was unopposed.
Approximately 99 percent of international Section 214 applications will qualify for streamlined
processing, including the following categories of applications:

applications to provide service between the United States and countries in which the applicant is not affiliated with any carrier that operates in that country ("unaffiliated routes");

applications to serve affiliated routes where the affiliated foreign carrier has already been
found to lack market power;

applications to serve affiliated routes where the affiliated foreign carrier has less than a 50
percent market share in the international transport and local access markets in the destination
country;

applications to serve affiliated routes where the affiliated foreign carrier has no telecommunications transmission facilities, or only mobile wireless facilities, in the destination country;

applications to serve affiliated routes where the foreign affiliate is from a WTO country if the
applicant seeks to serve that country solely by reselling the switched services of unaffiliated
U.S. international carriers;

applications not otherwise eligible for streamlining if the affiliate is a foreign carrier in a
WTO country and the applicant certifies that it will comply with our dominant carrier
regulations for the affiliated route; and

applications to assign or transfer control of an international Section 214 authorization where
an initial Section 214 application filed by the assignee or transferee would be eligible for
streamlined processing.

Authorized carriers will be allowed to undertake pro forma (non-substantial) assignments of
international Section 214 authorizations and transfers of control of entities holding international
Section 214 authorizations without prior approval of the Commission. The Commission invoked the
forbearance authority granted by the 1996 Telecommunications Act to forbear from reviewing these
transactions. Carriers must simply notify the Commission within 30 days following consummation
of the transaction. Also, any wholly owned subsidiary of an authorized carrier may provide service
without prior approval pursuant to similar procedures.

Under the rules adopted today, a carrier with a global Section 214 authorization for facilities-based service will be allowed to use any foreign submarine cable system in its provision of U.S.
facilities-based international services. Previous rules allowed use of all U.S.-licensed cable systems
but prohibited carriers from using foreign submarine cable systems that had not been individually
approved. If it becomes necessary to prohibit the use of any specific cable system, that cable system
may be added to the exclusion list maintained by the International Bureau.

I enthusiastically support this order. It represents an aggressive approach to
deregulation in response to increased competition in international telecommunications markets.
As a result, carriers will be able to enter the market more quickly and easily, increasing
competition and therefore benefiting consumers, and carriers will be able to organize their
businesses as they see fit. This is consistent with my philosophy of ensuring that we regulate
only when necessary and that we do so in a common sense manner that is not overly
burdensome to carriers.